In addition to its submission last week to the R&D Tax Incentive Review, AusBiotech joined Research Australia, the Association of Australian Medical Research Institutes, Medicines Australia, BioMelbourne Network and BioSA to make a joint submission. The Group’s key positions are:
- The R&D Tax Incentive provides significant support that enables businesses to undertake, develop and extend their R&D activities that would not be otherwise possible or significantly delayed;
- The R&D tax incentive is a significant factor in maintaining Australia’s competitiveness as a preferred location for R&D activities, such as pre-clinical testing and clinical trials. Biotechnology and medical technology are global industries, and Australia must compete to retain the R&D activity of local companies, as well as attracting international R&D activity into Australia;
- The R&D Tax Incentive is effective by providing spillover benefits into the health system by providing Australians with access to early stage therapeutics, diagnostics and medical devices during clinical trials and as final products. It also provides public sector research with contract R&D resulting from companies engaged in new research programmes;
- To build an innovation ecosystem in R&D-intensive industries it is critical to maintain a stable, supportive and consistent policy environment to encourage businesses to make strategic decisions around R&D activity and attract additional investment; and
- There are opportunities to streamline the administration and compliance of the incentive to make it easier for companies to focus on undertaking research and development activities.
The Review was announced as part of the National Innovation and Science Agenda, announced in December 2015 by the Federal Government. The Review is being conducted by Mr Bill Ferris AC, Chair, Innovation & Science Australia, Dr Alan Finkel AO FTSE, Chief Scientist of Australia and Mr John Fraser, Secretary to the Treasury.
AusBiotech also made an indepndent submission to the Review of the R&D Tax Incentive calling for preservation of the programme, as it is providing additional R&D in Australia and spillover benefits, and an end to constant tweaks and reviews that are causing instability and uncertainty. Read the full submission here.